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The problem states that a company wants to set up a bursary to provide R8244 annually to five students, with the university earning 1.2% interest every two months. We are to calculate the initial donation that the company should make, assuming that the fund can sustain these bursaries indefinitely.

To solve this, we use the formula for the present value of a perpetuity, adjusted for interest compounded every two months.

### Given:
- Annual payout per student: R8244
- Number of students: 5
- Total annual payout = \( 5 \times 8244 = 41220 \)
- Interest rate per 2-month period = 1.2%, or 0.012
- Number of 2-month periods per year = 6

#### Perpetuity formula:
\[
P = \frac{A}{r}
\]
Where:
- \( P \) is the principal (initial donation).
- \( A \) is the annual payout.
- \( r \) is the effective interest rate per year.

The effective interest rate per year for a 1.2% rate every two months can be calculated as:
\[
r = (1 + 0.012)^6 - 1
\]
Let's compute this now.The company should donate approximately R555,563.99 to the university in order to sustain the bursary that provides R8,244 per year to five deserving students, assuming the university earns interest at a rate of 1.2% every two months.

Would you like further details on the calculations, or have any other questions?

Here are 5 related questions you might explore:
1. How would the required donation change if the interest rate were compounded annually instead of every two months?
2. What happens to the required donation if the number of students increases?
3. How does the total interest accumulated in the first year compare to the annual payout?
4. What if the interest rate changes to 1.5% every two months—how would that affect the donation amount?
5. Could the company afford to reduce the donation if they allow some time for the bursary to accumulate interest before starting payouts?

**Tip**: When dealing with interest, always ensure you adjust the rate properly for the compounding period.

A company wants to set up a bursary at the university. The bursary should be such that it can forever give R8244 per year per student to 5 deserving students. If the bursaries are to be awarded at the beginning of each year (the first bursaries must be given to the students on the day that the company gives the university the donation) and the university earns interest at a rate of 1.2% per 2-month period, what amount should the company donate to the university? (Give your answer rounded to 2 decimal places.)

Learn how to calculate the required donation to sustain a perpetual bursary fund providing R8244 per student annually for five students. The problem involves compound interest at a rate of 1.2% every 2 months, using the perpetuity formula to determine the initial donation.

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